I stood next to my dad while he handed the cashier his credit card. Lunch with Dad is always a special treat, but this time I was even more excited because I was introducing him to my new favorite restaurant for the first time. "I'm sorry...we don't accept American Express." I don't think Dad liked hearing that because he responded with disappointment on his face and a quick "Well, you should" before sliding the AmEx back into it's spot and producing a different card from his wallet.
We all know them: The cards with the higher processing rates. American Express is up there along with all the cards with rewards programs attached to them. It's normal to want to fight back and prevent such transactions because you think it will save you money. But set your pitchfork down for a second and consider this:
Rewards Cards. Rewards cards encourage purchases by promising rewards to their subscribers for every dollar spent. This is like free marketing for you. You've likely already spent money on displays and advertisements, ambiance and brightly colored sales tags...all of this to gently coax the public to part with their money. Now you have a credit card company coaxing them right along with you. You should know what the credit card companies know; people with rewards cards spend more. So save the grumbling for tax season; what these people bring to you in added revenue from their rewards-driven purchasing is worth far more to you than the few nickels you lose in higher processing fees.
American Express. Much like rewards cards users, American Express card holders on average spend more. These are the kind of people you want to make happy. My dad has not ever suggested that we go back to that restaurant to eat. There are enough restaurants out there that we both like that DO take his favorite form of payment, so why bother with the one or two that don't?
Posted in EFT on Aug 02, 2013